ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

Note 11Goodwill and other intangibleassetsChanges in “Goodwill” were as follows:($ in millions)PowerProductsPowerSystemsDiscreteAutomationand MotionLowVoltageProductsProcessAutomationCorporateand Other TotalCost at January 1, 2011 614 1,411 547 399 1,090 42 4,103Accumulated impairment charges – – – – – (18) (18)Balance at January 1, 2011 614 1,411 547 399 1,090 24 4,085Goodwill acquired during the year (1) 109 321 2,765 16 50 – 3,261Exchange rate differences (11) (24) (19) (8) (10) (2) (74)Other – (3) – – – – (3)Balance at December 31, 2011 712 1,705 3,293 407 1,130 22 7,269Goodwill acquired during the year (1) 17 44 112 2,723 (1) – 2,895Exchange rate differences 5 13 15 17 11 1 62Balance at December 31, 2012 734 1,762 3,420 3,147 1,140 23 10,226(1)Amounts include adjustments arising during the 12-month measurement period subsequent to the acquisition date.In 2012, goodwill acquired primarily included $2,723 million in respect of Thomas & Betts (allocated to the Low VoltageProducts operating segment) with the remainder representing goodwill in respect of Newave Energy Holding SA(allocated to the Discrete Automation and Motion operating segment), as well as a number of smaller acquisitions andpurchase accounting adjustments.In 2011, goodwill acquired primarily included $2,728 million in respect of Baldor (allocated to the Discrete Automationand Motion operating segment) with the remainder representing goodwill in respect of Mincom (allocated to the PowerSystems operating segment), Trasfor (allocated to the Power Products operating segment) and AB Lorentzen & Wettre(allocated to the Process Automation operating segment), as well as a number of smaller acquisitions and purchaseaccounting adjustments.Intangible assets other than goodwill consisted of the following:2012 2011December 31, ($ in millions)Gross carryingamountAccumulatedamortizationNet carryingamountGross carryingamountAccumulatedamortizationNet carryingamountCapitalized software for internal use 688 (533) 155 640 (483) 157Capitalized software for sale 401 (346) 55 393 (295) 98Intangibles other than software:Customer-related 2,733 (319) 2,414 1,499 (163) 1,336Technology-related 768 (240) 528 564 (123) 441Marketing-related 378 (59) 319 213 (32) 181Other 73 (43) 30 70 (30) 40Total 5,041 (1,540) 3,501 3,379 (1,126) 2,253Additions to intangible assets other than goodwill consisted of the following:($ in millions) 2012 2011Capitalized software for internal use 71 74Intangibles other than software:Customer-related 1,204 1,272Technology-related 222 415Marketing-related 161 153Other – 3Total 1,658 1,917ABB Annual Report 2012 | Financial review 105